5 Steps to More Cannabis Innovation & Creativity
Most companies I speak with put product innovation at the top of their agendas – and for good reason. Truly innovative products - not new strains or packaging for example – can help deliver premium margins, consumer loyalty and brand differentiation, a powerful weapon when competing in a cannabis market with hundreds of me-too brands duking it out in a declining price environment.
Leveraging innovation is a two-step journey. First, it is about delivering breakthrough consumer value through reimagining the product or consumer experience. For example, one company I worked with overlaid some consumer’s need states with cutting-edge mobile technology and a new delivery model to create a white-space product that generated superior category value.
Secondly, you must commercialize the idea quickly through a finely-tuned productization and marketing process. While many businesses are terrific at idea generation, they often fall flat when it comes to getting high potential ideas to market and then to drive growth.
Through my cannabis, CPG and pharma experience, I discovered that innovation leaders display 5 business practices that spur innovation-led growth:
1) Innovation is a corporate priority
Leader don’t simply encourage their people to pursue this objective — they see themselves as personally on the hook to deliver creativity and innovation. The innovation mission is also a cultural trait baked into most functions, levels and activities, and something that is regularly measured;
2) Thinking revolves around the consumer
Innovators obsess over their consumer’s needs and requirements, and pay a lot attention to properly segmenting the market. To really understand the consumer, firms use a variety of quantitative and qualitative research methods including ethnography and behavioral science. Channel partners needs are never taken for granted, given their vial role;
3) Key functions are treated as investments, not expenses
Advanced data analytics is a prerequisite for innovation exploration and data-driven decision making. Marketing is a required competency to build brands and achieve rapid market take off;
4) Maximize speed to market
Great ideas are worthless if you can’t get to market with the right product on time and on budget. Innovation-leading firms have systematic commercialization practices including having early stage R&D budgets, consumer check-ins, and timely, fact-based decision making;
5) Learn as they go
Creative companies see innovation as an iterative process not a one-time event. This approach includes regular knowledge sharing and incorporating real-time market feedback loops. Executive also learn to balance the imperative of failing fast versus exhibiting market patience.
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